ATG looking forward to economies of scale with Yokohama

Although Yokohama Rubber plans to “create a premier global tyre manufacturing company” through its acquisition of Alliance Tire Group (ATG) and resultant synergies in expertise and experience, the Japanese firm confirms it will retain the ATG business model, along with the company’s “culture” and brands.

In a statement released this week, ATG also writes that it “will benefit and gain additional expertise from Yokohama” as a result of the acquisition, with Yokohama the “rubber specialist” enabling ATG to “enforce innovation, quality management as well as new product technologies.” ATG also states that “both Yokohama and ATG expect advantages in terms of human resources,” however it does not expound on the implications of this advantage for the two companies’ workforces.

“Through access to Yokohama’s resources and capabilities in R&D, marketing, supply chain and procurement, we envisage economies of scale,” comments Yogesh Mahansaria, Alliance Tire Group founder and chief executive officer. “We believe that this move is an excellent step towards our goals of expanding our operations and brand profile internationally. Yokohama has a rich heritage, having been established 99 years ago, with 15 tyre plants globally on three continents and sales and marketing subsidiaries on five. Following this acquisition, our team will be part of a much larger company with extensive resources and a strong commitment to long term growth and success.”